SoftBank (SFTBY) (JP:9984) has reportedly paused ongoing discussions to acquire U.S. data center operator Switch Inc. According to Bloomberg, SoftBank CEO Masayoshi Son confirmed earlier this month that a full acquisition would not proceed and that a planned January announcement had been scrapped. Sources indicate that the two parties are continuing discussions regarding a partial investment or partnership. However, with a full deal off the table, Son’s broader plan to build out the Stargate AI infrastructure has suffered a setback.
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For context, Switch Inc. is a U.S.-based data center operator that designs, builds, and manages hyperscale, cloud-enabled facilities for enterprise and technology clients. In December 2025, SoftBank agreed to buy DigitalBridge Group Inc. (DBRG) for $3 billion, which controls a majority stake in Switch.
SoftBank’s Stargate AI Plans Hit a Roadblock
With these talks halted, Son’s plan to launch the Stargate AI infrastructure has hit a setback. For several months, Son sought to buy Switch in a deal valued at around $50 billion. He was convinced that controlling its network of energy-efficient data centers would give his $500 billion Stargate initiative the computing power needed to support OpenAI.
Notably, the deal would have been one of SoftBank’s largest to date and would have provided a major boost to the Stargate Project for building U.S. data centers.
However, some people within SoftBank had been cautious about the size of the deal and the challenges of managing data center campuses from Las Vegas to Atlanta, according to sources. At the same time, Switch is preparing for an initial public offering as early as this year, with backers considering a valuation of around $60 billion, including debt.
Is SoftBank a Good Stock to Buy?
SoftBank’s U.S.-listed shares don’t have strong Wall Street coverage. Meanwhile, TipRanks AI analyst gives it a Neutral rating with a price target of $53, suggesting a 300% upside.
TipRanks’ AI-driven rating combines insights from multiple models, including OpenAI’s GPT-4o and Perplexity’s SonarPro.
